China is guiding local mutual funds and insurers to boost their investments into stocks in the government’s latest initiative to shore up its ailing equity market as it confronts the threat of higher tariffs.

Equities rally as authorities set explicit investment targets for mutual funds and state-owned insurance companies

State-owned insurers and mutual funds are expected to play a pivotal role in the process, the China Securities Regulatory Commission and the Ministry of Finance said in a press briefing.

China said on Wednesday it will guide big state insurers and commercial insurance funds to increase investments in the A-share market, in a latest move to boost its lagging stock market. Under a plan jointly released by six financial regulators including the securities regulator,